The ongoing improvement of the business environment and, concurrently, the increase of steel production in Brazil have resulted in a shortage of some raw materials even for domestic usage. Accordingly, the high local demand for pig iron has pushed Brazil to buy the raw material from abroad, which is highly unusual for Brazil, taking into account that the country is one of the traditional key exporters to the global market.
By the middle of the current week, SteelOrbis has learned of an ex-Ukraine BPI booking of 30,000 mt done by a Brazil-based steel producer. The deal price is said to be $395/mt FOB Black Sea, but has neither been confirmed by the seller nor by the buyer. Moreover, market insiders state that the price is hardly considered to be the market level, considering that the deal was done within one steel group.
Initially, the deal in question created confusion among all market insiders and was hard to believe. “I doubt it really happened. But in case it did, the prices may soar further,” an international trader commented.
SteelOrbis has heard that one Russian supplier has already voiced its ex-CIS BPI offers at $400/mt FOB Black Sea, versus $370-380/mt FOB Black Sea which was prevalent last week.